HONG KONG (AFP) – Asian markets mostly fell sharply on Tuesday (Oct 23) as geopolitical risks pile up, from US tensions with Russia and Saudi Arabia, to trade issues and Italy’s budget stand-off with the European Union.
Shanghai and Hong Kong saw deep losses, having soared over the previous two trading days after China’s top brass issued coordinated statements of support for the country’s markets and officials unveiled tax cut plans.
The gains had provided some much-needed support to Asia but investors reverted to selling on Tuesday, with nerves tested further after Donald Trump’s warning that he will pull out of a nuclear treaty with Russia and bolster America’s arsenal.
“Global financial markets continue to struggle to rally as various geopolitical concerns weigh on investor confidence,” Nick Twidale, chief operating officer at Rakuten Securities Australia, said.
He added that with regards to China, dealers “will be very keen to see if they can maintain the stellar run that they’ve experienced over the last couple of days,” he said.
“With the rest of the world looking much more pessimistic in the current environment there could be a firm correction on the cards.”